i need the answer quickly Bergo Bay's accounting system generated the following account balances on December 31. The company's managerknows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory,and the accrued factory payroll (Factory Wages Payable) has not been recorded.Notes payableCashAccounts receivableRaw materials inventoryWork in process inventoryFinished goods inventoryPrepaid rentAccounts payableCommon stockRetained earnings (prior year)SalesCost of goods soldDebit$ 69,00038,000Credit24,000015,0005,000$ 10,80013,80050,00079,000187,400Factory overheadGeneral and administrative expenses115,00024,00051,000Totals$ 341,000$ 341,000These six documents must be processed to bring the accounting records up to date.Materials requisition 10:Materials requisition 11:Materials requisition 12:Labor time ticket 52:Labor time ticket 53:Labor time ticket 54:$ 4,300 direct materials to Job 402$ 8,000 direct materials to Job 404$ 2,400 indirect materials$ 8,000 direct labor to Job 402$ 12,000 direct labor to Job 404$ 5,000 indirect laborJobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost.4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $89,000 at the endof the current year.5. Assume that the $2,400 on materials requisition 12 should have been direct materials charged to Job 404. Does this error resultin overstatement or understatement of total assets?Complete this question by entering your answers in the tabs below.Req 4 Income Req 4 BalanceStatementSheetReq 5Prepare a balance sheet as of December 31.BERGO BAY COMPANYBalance SheetAs at December 31AssetsInventories0Total assets$0LiabilitiesTotal liabilities0EquityTotal equity0Total liabilities and equity$0

Adjusted Trial Balance: This is a list of the balances of general ledger accounts after making the…

4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $89,000 at the end of the current year. 5. Assume that the $2,400 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets?

4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $89,000 at the end of the current year. 5. Assume that the $2,400 on materials requisition 12 should have been direct materials charged to Job 404. Does this error result in overstatement or understatement of total assets?

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter2: Introduction To Transaction Processing

Section: Chapter Questions

Problem 21MCQ

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Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Notes payable Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Common stock Retained earnings (prior year) Sales Cost of goods sold Debit $ 75,000 44,000 Credit 27,000 0 9,000 3,000 $ 9,600 12,600 30,000 90,000 204,800 Factory overhead General and administrative expenses 115,000 25,000 49,000 $ 347,000 $ 347,000 Totals These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,000 direct materials to Job 402 $ 7,700 direct materials to…
Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 75,000 44,000 Credit 27,000 0 9,000 3,000 $ 9,600 12,600 30,000 90,000 204,800 115,000 25,000 49,000 $ 347,000 $ 347,000 These six documents must be processed to bring the accounting records up to da Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,000 direct materials to Job 402 $ 7,700 direct materials to Job…
Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 170,000 75,000 80,000 0 15,000 3,000 Credit $ 17,000 25,000 50,000 271,000 373,000 218,000 115,000 60,000 $ 736,000 $ 736,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 10,200 direct materials to Job 402 $ 18,600 direct…
Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 68,000 37,000 23,500 Labor time ticket 53: Labor time ticket 54: 0 9,000 3,000 113,000 25,000 45,000 $ 323,500 Credit $ 10,800 13,800 30,000 93,000 175,900 $ 323,500 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: $4,700 direct materials to Job 402 $ 7,300 direct materials to…
Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 75,000 44,000 27,000 0 12,000 4,000 106,000 25,000 54,000 $ 347,000 Credit $ 8,800 11,800 40,000 84,000 202,400 $ 347,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,800 direct materials to Job 402 $ 7,600 direct materials to…
Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 75,000 44,000 Credit 27,000 0 9,000 3,000 $ 9,600 12,600 30,000 90,000 204,800 115,000 25,000 49,000 $ 347,000 $ 347,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,000 direct materials to Job 402 $ 7,700 direct materials to…
Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 71,000 Credit 40,000 25,000 0 12,000 4,000 $ 10,000 13,000 40,000 94,000 171,000 112,000 24,000 40,000 $ 328,000 $ 328,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,800 direct materials to Job 402 $ 7,400 direct materials…
Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 77,000 46,000 28,000 0 9,000 3,000 108,000 26,000 49,000 $ 346,000 Credit $ 10,000 13,000 30,000 82,000 211,000 $ 346,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $ 4,700 direct materials to Job 402 $ 7,300 direct materials to…
[The following information applies to the questions displayed below.] Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Credit Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 170,000 75,000 80,000 0 15,000 3,000 218,000 115,000 60,000 $ 736,000 $ 17,000 25,000 50,000 271,000 373,000 $ 736,000 These six documents must be processed to bring the accounting records up to date. $ 10,200 direct materials to Job 402 $ 18,600 direct materials to Job 404 $ 5,600 indirect materials Materials requisition 10:…
[The following information applies to the questions displayed below.] Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Debit $ 170,000 75,000 80,000 0 Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: 15,000 3,000 Labor time ticket 53: Labor time ticket 54: 218,000 115,000 60,000 $ 736,000 Credit $ 17,000 25,000 50,000 271,000 373,000 These six documents must be processed to bring the accounting records up to date.…
Required information [The following information applies to the questions displayed below.] Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory. Work in process inventory. Finished goods inventory Prepaid rent Accou Accounts payable Notes payable Comme Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals a. Direct materials. b. Direct labor. c. Overhead applied. d. Indirect materials. e. Indirect labor. View transaction list No Debit $ 70,000 39,000 24,500 View journal entry worksheet 0 6,000 2,000 Transaction 108,000 25,000 37,000 $ 311,500 These six documents must be processed to bring the accounting records up…
[The following information applies to the questions displayed below.] Bergo Bay's accounting system generated the following account balances on December 31. The company's manager knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory, and the accrued factory payroll (Factory Wages Payable) has not been recorded. Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Cost of goods sold Factory overhead General and administrative expenses Totals Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Debit $ 170,000 75,000 80,000 0 15,000 3,000 Labor time ticket 53: Labor time ticket 54: 218,000 115,000 60,000 $ 736,000 Credit $ 17,000 25,000 50,000 271,000 373,000 These six documents must be processed to bring the accounting records up to date.…